1392

Authorisation procedure and Trade Registry aspects for CAEN 1392

Registration with the Trade Register (ONRC) for the activity of manufacture of made-up textile articles (excluding apparel and underwear) is carried out in accordance with Law 26/1990 and Government Emergency Ordinance 44/2008 for sole proprietorships (PFA/II). When filing the application, a sworn declaration under Law 359/2004 is completed, confirming compliance with the legal operating conditions (hygiene standards, fire safety, environmental protection). No prior approvals from authorities are required for establishment, however, within 30 days of registration, the Tax Authority (ANAF) must be notified and the fiscal registration statement (vector fiscal) must be submitted.

Regulatory framework, specific approvals and control institutions

For CAEN 1392, the institutions with control attributions are: Tax Authority (ANAF) (tax inspection), Labour Inspectorate (ITM) (occupational health and safety) and Sanitary-Veterinary and Food Safety Authority (DSVSA) (if products come into contact with food – requires a sanitary-veterinary clearance). Production activities must comply with Government Decision 115/2013 on authorisation conditions and with European rules on textile product safety (Regulation 1007/2011 on textile names). Obtaining special environmental permits (integrated environmental permit) is not mandatory unless capacity thresholds set out in Law 278/2013 are exceeded.

Finished products may be subject to quality standards SR EN ISO, and for export outside the EU, certificates of origin or declarations of conformity may be required. It is advisable to register trademarks with the State Office for Inventions and Trademarks (OSIM) for the protection of commercial names.

Tax management, audit risk from ANAF and specific accounting

CAEN 1392 activity falls under the category manufacture of textile articles, subject to the standard VAT regime (standard rate 19%). If subcontracting operations are carried out (confection work on client’s materials), the provisions of Article 331 of the Fiscal Code on service supplies apply. The tax base is the net income determined in the real system or based on income norms. For micro-enterprises, a 1% or 3% income tax rate applies, depending on revenues realised.

Specific accounting documents: warehouse records for raw materials (fabrics, yarns), consumption notes for materials, detailed production sheets per batch. Expenses for depreciation of machinery (industrial sewing machines, cutting machines) are deducted according to the fixed assets catalogue. ANAF will verify the correct classification of expenses and the reality of transactions by comparing inventories with financial statements.

In case of using the RO e-Factura system (Law 296/2023), all invoices issued to B2B entities must be transmitted to the national system, subject to fines. Also, for intra-Community supplies of textile articles to EU partners, a VIES recapitulative statement must be completed and the 0% VAT rate applies only if proof of transport exists. Audit risks: under-declaration of income from sales (impact on profit/income tax), unjustified VAT deduction (e.g., fictitious purchases of raw materials), failure to meet SAF-T reporting obligations (D406). It is essential to keep supporting documents for at least 5 years and archive them electronically in accordance with the legislation.